- Turkey is purportedly creating new regulations to control cryptocurrency assets in an attempt to persuade the FATF to take it off the “grey list” of countries.
- Simsek said that the only unresolved issue with regard to technical compliance is cryptocurrency assets.
Turkey is purportedly creating new regulations to control cryptocurrency assets in an attempt to persuade the Financial Action Task Force (FATF), a global body tasked with addressing financial crimes, to take it off the “grey list” of countries that have not gone far enough in the fight against money laundering and terrorist financing.
Turkey was added to the FATF’s grey list in 2021. Turkish Finance Minister Mehmet Simsek reportedly stated:
“During a discussion with a parliamentary commission on October 31, a FATF report determined that Turkey adheres to all but one of the 40 standards set by the watchdog.”
According to a report from Reuters, Simsek said that the only unresolved issue with regard to technical compliance is cryptocurrency assets. Although he did not detail the legislative reforms, he mentioned plans to introduce a crypto assets law to parliament to get off the grey list.
The FATF was founded by the leading economies of the Group of Seven, or G7, to protect the global financial system. In 2019, it issued a warning to Turkey over serious shortcomings in the protocols for seizing assets linked to terrorism and the spread of WMDs.
By the end of 2024, the Turkish Presidential Annual Programme for 2024, which was published on October 25 in the Republic of Turkey’s Official Gazette, aims to have all cryptocurrency rules in place.
The extensive 500-page document, including Article 400.5, describes the efforts to provide precise definitions for digital assets, which may eventually be liable to taxes.
Additionally, the document aims to identify Bitcoin exchanges and other providers of digital assets legally. It does not, however, offer any additional details regarding the impending regulatory structure.
The Republic of Turkey’s Central Bank completed the first testing of the digital lira, or Central Bank Digital Currency (CBDC), in December 2022 with success. It has stated that it plans to continue testing until 2024.